BILL ANALYSIS SB 856 Page 1 SENATE THIRD READING SB 856 (Budget and Fiscal Review Committee) As Amended October 7, 2010 2/3 vote. Urgency SENATE VOTE :Vote not relevant SUMMARY : Contains necessary statutory and technical changes to implement changes to the Budget Act of 2010. Specifically, this bill : 1)Increases the fee on Enterprise Zones from $10 to $15 in order to cover the full cost of administering the Enterprise Zone Program. 2)Restricts the Department of Financing from allocating funds appropriated for the Citizens Redistricting Commission until: a) The State Auditor has randomly drawn names of eight individuals who shall serve on the Commission pursuant to law; and, b) Thirty day's after submission of their intent to expend those funds. 3)Adds a requirement to the existing statutorily required 2013 audit of the Bureau of Private Post-secondary Education to review the bureau's staffing level and expertise in relation to their statutory responsibilities. 4)Authorizes the healing arts boards under the Department of Consumer Affairs, including the Dental and Medical Boards of California, to employ individuals, other than peace officers, to perform investigative services and to serve as experts. 5)Requires the Department of Finance to provide 30 day notification to the Joint Legislative Budget Committee prior to finalizing a contract for the BreEZe project (the integrated enterprise-wide enforcement and licensing system described in the department's strategic plan). 6)Requires the Department of Consumer Affairs to report to the Chair of the Joint Legislative Budget Committee on whether the licensing positions for the healing arts boards remain SB 856 Page 2 necessary after implementation of the project. 7)Forgives a $15 million loan made to the San Diego National Sports Training Foundation for construction of an Olympic Training Facility. The lien on the facility was removed in the 1998 budget, and the Foundation (a non-profit organization) has no ability to repay the loan. 8)Reclassifies the Tax Credit Allocation Fee Account to place it in the correct fund classification. 9)Increases the authorized amount the State Treasurer's Office may collect from the Local Agency Investment Fund (LAIF) to allow them to cover their full administrative costs. 10)Revised the Prompt Payment Act to provide uniformity to how the State handles payments and penalties for late payments. It specifies that state agencies have to pay refunds or other undisputed payments due to individuals within 45 days after receipt of a notice of refund due. It also provides uniformity in the penalty for late payments, generally at a rate of 10% above the US Prime Rate on June 30 of the prior fiscal year. 11)Allows the State Treasurer's Office to redeem matured bonds and coupons that are 10 years or more past their call date when presented for payment by the bondholder. 12)Eliminates the practice of the State providing funds to locals to make-up the difference between new Vehicle License Fees on trailers as compared to the old calculation. 13)Authorizes a county, city, city and county, or special district to charge prospective employees or volunteers at parks, playgrounds, recreational centers, or beaches for the costs associated with the existing screening requirement. 14)Authorizes specific entities to request that Commission on State Mandates adopt a new test claim decision to supersede a previously adopted test claim. It would authorize the commission to adopt a new test claim decision only upon a showing that the state's liability for the previously adopted test claim decision has been modified based on a subsequent change in law. SB 856 Page 3 15)Recasts the existing requirements regarding the posting of agendas and the description of items to be discussed at meetings of legislative bodies of local agencies as best practices that could, at the discretion of the legislative body, be used to implement the constitutional provisions regarding access to information. 16)Eliminates the obsolete section of code regarding the Manufacturing Technology Program, which has not been in existence for years. 17)Authorizes the Department of Industrial Relations to enter into an agreement with Employment Development Department to collect penalties and wage assessments from employers, as part of the Automated Collection Enhancement System implementation. Requires employers, beginning with the first calendar quarter of 2011, to file with the Director of the Employment Development Department a quarterly return of paid unemployment insurance taxes. Eliminates the requirement that an employer file an annual reconciliation form with the Director beginning in calendar year 2012. 18)Eliminates the continuous appropriation for the Apprenticeship Training Contribution Fund and instead specifies that all money in the fund be used for apprenticeship training and to pay the expenses of the Division of Apprenticeship Standards, under the Department of Industrial Relations. 19)Revises the method for fee payment by state agencies to the State Public Works Enforcement Fund, a special fund continuously appropriated for the purposes of the Department of Industrial Relations' enforcement of prevailing wage requirements applicable to public works. 20) Extends from April 3, 2011 to September 3, 2011, the time period within which the Employment Development Department is required to implement changes related to the establishment of unemployment compensation benefit claims under the Alternative Base Period Program. 21) Increases the fee for a general liquor license by 15%, from $12,000 to $13,800 and adds an annual adjustment per the SB 856 Page 4 Consumer Price Index. The proposed fee adjustment is projected to generate increased revenue of $788,400 to address the Alcoholic Beverage Control Fund's structural deficit. 22) Increases Catering and Event Authorization fees from $10 to $25. Upon full implementation, the fee increases would generate an estimated $256,500 in new revenues to address the Alcoholic Beverage Control Fund's structural deficit. 23) Allows the Department of Justice to continue to share crime law enforcement data with the Western States Information Network, which is the regional program for the sharing of law enforcement databases for Alaska, California, Hawaii, Oregon, and Washington. 24) Captures $13.7 million in General Fund savings in 2009-10 resulting from fee revenue that now supports the state's forensic labs AB 3 X8 (Committee on Budget), Chapter 3, Statutes of 2009-2010 8th Extraordinary Session. 25) Provides $30 million from the Indian Gaming Special Distribution Fund to provide grants to local government agencies impacted by tribal gaming. 26) Allows for the Franchise Tax Board to provide social security numbers to CalPERS so they can begin receiving federal reimbursement funds on behalf of their members. CalPERS has been approved to receive federal funds to assist in offsetting the cost of early retiree reinsurance costs and their dependents per the Early Retiree Reinsurance Program. 27)Specifies that the Imperial Irrigation District (IID) can fulfill its reserve account requirements under an existing loan guarantee with funds held in the Imperial Irrigation District Infrastructure Guarantee Trust Account. Additionally, this bill requires that the California Infrastructure Bank (I-Bank) loan guarantee for IID borrowing for water conservation improvements be initiated if funds due to be transferred to IID from San Diego County Water District are reduced, eliminated or delayed. 28)Authorizes the Technology Services Receiving Fund (TSRF) to receive revenues for services rendered by the office of the Office of the Chief Information Officer (OCIO) and allows OCIO SB 856 Page 5 to collect payments from public agencies for services requested from, rather than contracted for, the OCIO. Additionally, this bill revises the conditions used to determine whether a balance remains in the TSRF at the end of a fiscal year to limit the amount that is used to determine a reduction in billing rates. 29)Requires that if a proposed state service contract contains an information technology component that would normally be subject to oversight by the State Chief Information Officer, it shall be subject to review, approval, and oversight by the State Chief Information Officer. 30) Exempts, until January 1, 2012, institutions that offer flight instruction or an institution that offer Federal Aviation Administration certified educational programs in aircraft maintenance from filing applications for approval to operate. 31)Urgency Clause. Declares this bill take effect immediately as an urgency statute. Analysis Prepared by : Sara C. Bachez / BUDGET / (916) 319-2099 FN: 0007191